Development & Value Add

The Current Real Estate Market Opportunity

The United States as a whole has been short on supply of housing, especially rental housing, since the early 1980s, and some would argue even before then. The pandemic has only served to exacerbate this imbalance. The supply of housing is struggling to keep up with pre-pandemic demand, and migration from northern states to the Sunbelt States is continuing to exponentially increase demand for housing. The pandemic's disruption of the supply chain only made these constraints worse. To put the current situation into perspective, consider this fact. It’s estimated that the US needs to build an average of 328,000 new apartments every year by 2030 to keep up with demand. We’ve only hit that mark three times since 1989. It is no longer a matter of if we need housing. It is a matter of where housing will provide the most utility. The real estate principle of “location, location, location” still rings true. Home affordability in the United States is not a reality for most Americans. When the current home affordability data is taken into context with the current migratory patterns of the US, it becomes readily apparent that the Sunbelt states, such as Florida, Texas, Arizona, and the Carolinas, are ripe for build-to-rent and multifamily developments. The “missing middle” remains missing for the working class. The working class is wholly underserved, and they comprise the majority of the population, which is one of the major driving forces behind the build-to-rent phenomenon the United States is currently experiencing. The macrotrends indicate there are major tailwinds behind multifamily and build-to-rent housing in the Sunbelt region.

Geographic Focus

Considering the current market opportunity, we have identified key states and submarkets within the Sunbelt region that will derive the highest utility from additional multifamily and build-to-rent supply. We are very focused on the state of Florida, especially submarkets between North Central FL and South FL that will benefit from economic growth and infrastructure improvements, such as FL's Brightline. Additionally, we are interested in Tennessee, North Carolina, South Carolina, Texas, Georgia, and Alabama.

Ground Up Development Strategy

Acquisition Criteria

  • Asset Type: Vacant Land or Total Redevelopment

  • Acreage: Urban: 1+ acres, Suburban: 15+ acres

  • Unit Count: Build-to-rent (“BTR”): 125+, Multifamily (“MF”): 200+

  • Geographies: Major MSAs, secondary, and tertiary markets in the Sunbelt Region

Value Add & Core Plus Strategy

Acquisition Criteria

  • Target Markets: Primary, Secondary & Tertiary Markets in the Sun Belt

  • Product Type: Garden, Townhome or Mid-Rise

  • Investment Size: 100 units or less, Single properties or portfolios, all cash or assume

    existing debt.

  • Asset Class: Class A to B- (typically 1990 or newer)

  • Investment Strategy: Value Add, Opportunistic, Core, Core-Plus

    Properties in lease-up or pre-stabilized

    Value-add renovation and redevelopment opportunities.

    Distress Assets (loan purchases & REO)

Download Our Operating Asset Acquisition Criteria

Do you need development services?

Southern Waters Development, LLC (“SWD”) is a real estate development firm based in Fort Lauderdale, FL. A team with over 40 years of combined experience in real estate development, on-site and off-site construction management, and underwriting leads SWD. Through their experiences, the group has expertise in a wide range of asset types, ranging from single-family homes to industrial complexes, high-rises, missing middle asset types, and an industrial spacecraft launch complex. SWD provides owner representation services spanning the entire development life cycle, including entitlements, site analysis, development underwriting, project programming, site design, and procurement services. The diverse background of SWD’s principals enables the team to not only craft but also properly execute a unique development plan for each opportunity it pursues.

831 NE 20th Avenue

Fort Lauderdale, FL 33304

(321) 368-0103

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